LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on how can long-term assurance of supply consulting for direct materials help companies better manage spend and the impact of COVID-19.
The outbreak of the COVID-19 pandemic is significantly impacting the existing supply bases across the globe. Businesses must find new sources of supply, qualify suppliers based on targeted requirements, and monitor suppliers based on custom score carding to ensure their sustainability in the manufacturing sector. They must identify suppliers of direct materials that are diverse and reliably compliant with increasingly complex environmental and related regulatory requirements to keep the supply chains moving. They must also leverage long-term assurance of supply consulting for sourcing of direct materials to eliminate capital equipment, free up cash, and improve the balance sheets.
At SpendEdge, we closely monitor supply market conditions for improved supply chain strategies and obtain in-depth sourcing and procurement insights. Our experts are providing long-term assurance of supply consulting for direct materials to help businesses reduce the impact of COVID-19.
Challenges Faced by Companies in Direct Materials Sourcing
Unprecedented risks
Companies in the manufacturing sector are facing unprecedented risks due to the outbreak of COVID-19. They should consider OEMs that don't manufacture their supply for products. Reducing complexity in requirements and gaining granular insights into supplier qualification and selection process can help companies better manage the risks. Qualifying suppliers by region, commodity and plant will help companies mitigate the risk of cross-contamination across materials and ensure safety.
Want to obtain actionable insights to assess unprecedented risks associated with direct materials sourcing to manage the impact of COVID-19? Request a free proposal to gain insights into our customized solutions.
Avoid contract leakage
In the time of lockdowns and recession, companies are advised to create contracts quickly while meeting compliance requirements. Contracts designed must be easily accessible for purchase order execution purposes. Integrating sourcing and contracting systems with ERP systems can help companies improve the direct materials sourcing process and avoid contract leakages while reducing excess material costs at the same time. To enhance contract management and obtain direct materials sourcing insights, get in touch with our experts now!
Increasing complexity
Multilevel manufacturing bills of materials (BOMs) like the assemblies—and components of those assemblies make the direct materials sourcing difficult for commodity managers. However, such materials are imperative to build high-tech devices. Qualifying the right suppliers for such complex BOMs then becomes a task for companies. Companies must ensure buffer stock as "insurance" to keep the production going during a crisis.
To minimize the impact of COVID-19 and improve the direct materials sourcing process, reach out to our analysts now!
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June 03, 2020 at 10:29PM
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How can Long-term Assurance of Supply Consulting for Direct Materials help Companies Better Manage Spend and the Impact of COVID-19? | Experts at SpendEdge Explain - Business Wire
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